London Skyline Report 2017

Metropolis and Cityoffices have published their Winter 2017 survey of the London office market for clients and those due to take subscriptions in December 2017 and January 2018.

The new report covers:

  • Commentary on the 92 London office schemes under construction at the beginning of Q4 2017;
  • The report examines the 32 new London scheme starts between Q1 and Q3 2017, as well as schemes completed over the course of 2017;
  • The analysis looks at the next wave of schemes due to start construction over the next few months, with examples;
  • A section on occupier demand looks at space pre-let in under construction and recently completed schemes;
  • Further sections examine London office lease ends in 2016 and trace the destinations of those occupiers in 2017;
  • The report concludes looking ahead of 2018, in terms both of those 6m sq ft of schemes currently at demolition stage and those tipped to see construction starts over the next 12 months.

The closing sections of the report also cover forecasts of likely office completion levels in 2018-2020 and current levels of office demand amongst London occupiers, set against trends in the letting of grade A office space in central London.

All figures are based on Metropolis and Cityoffices’ huge weekly business leads bulletins and website which delivers 130+ weekly interviews with office occupiers considering relocations, fit-out news and office scheme developers.

If you would like to find out more about a trial subscription in December or January 2018 to Metropolis and claim a free Skyline report, then email Simon at simon@metroinfo.co.uk

 

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London Lettings – December 2015

Central London office lettings maintained momentum with a further 1.1m sq ft of transactions in December 2015, spread across 74 deals during the month. The annual total reached just over 12m sq ft, about 5% below the 2014 total.

December was characterised by 15 deals over 20,000 sq ft, including WeWork at Waterhouse Square, EC1; Carlyle Group at St James’ Market SW1; Turner & Townsend at One New Change, EC2; Office Group at Eastbourne Terrace, W2 and and RGA Media at 99 Clifton Street, EC2.

Business services topped the table of lettings by sector, helped bytwo WeWork deals, followed by financial services boosted by Carlyle. Computer and media sectors are also performing well. Office deals under offer remained around 3.5m sq ft.

By area, the City accounted for only just over a third of the total space let at 36pc of the floorspace let in December. Midtown, Victoria and Southbank all had a good month. Current London office demand is calculated to be around 5.9m sq ft in the City and 3.6m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month reached 400,000 sq ft (36% of the total), as transactions for newly developed or refurbished space took a slightly smaller part of the total this month.

Metropolis is working on an upcoming report on office requirements in London and across the UK.

London Fit-out Market Growing

Recent research from Metropolis suggests that central London grade A lettings and thus prime fit-out opportunities, have grown by 10% over the first 9 months of 2015, compared to the Jan-Sep period in 2014.

Midway between the Metropolis Fit-out Report of Spring 2015 and the planned Metropolis Fit-out Report for Spring 2016, interim figures suggest the interiors market based on central London tenants signing for space in newly constructed or recently refurbished buildings, has grown by 10%, from 5.4m sq ft of top grade lettings in the first 9 months of 2014, to 6m sq ft for the first three quarters of 2015.

Some of the largest grade A deals agreed so far in 2015 have included: The Financial Conduct Authority at the International Quarter, Stratford; Deutsche Bank at 10 Upper Bank Street, E14; Ashurst at London Fruit & Wool Exchange, E1 and Facebook at 1 Rathbone Square, W1.

In terms of which firms are winning the most fit-out business, data is muddied by the reluctance of many contractors and architects to report appointments, but some notable contract wins have included:

  • ING Barings appointed Overbury for its new 120,000 sq ft HQ at 8-10 Moorgate, EC2;
  • Paragon Interiors appointed on SEI Investments new 58,000 sq ft base at Alphabeta building on Finsbury Square, EC2;
  • Brit Insurance appointed ISG on its 66,000 sq ft fit-out at Leadenhall Building, London, EC3;
  • Network Rail appointed Willmott Dixon Interiors for its 100,000 sq ft refurbishment of One Puddle Dock, Blackfriars, EC4;
  • Hewlett Packard appointed Overbury for its 68,000 sq ft interiors at 1 Aldermanbury Square, EC2;
  • Zurich Insurance appointed ISG n its 70,000 sq ft fit-out at 70 Mark Lane, EC3;
  • CHP Consulting appointed Maris for its 19,000 sq ft fit-out at Moor Place, EC2;
  • Euromoney using FSL Interiors at on its 48,000 sq ft at 8 Bouverie Street, EC4;

Penson, HLW, HOK, Gensler, Pringle Brandon Perkins+Wil and MCM are among the architects to be appointed on large London fit-outs this year.

Looking ahead, recent research by Cityoffices, showed that although in 2015 London office construction paused slightly to around 11m sq ft of projectswith main contractors currently on site, there is now a wave of a further 7m sq ft of office projects at demolition or site clearance stage, where a construction start in early 2016 is expected. In addition, Metropolis figures for companies with London office requirements currently top 11m sq ft.

 

 

 

 

Central London Office Lettings March 2015

Central London office lettings rose in March 2015 to just over 1.25m sq ft sq ft of transactions in 75 deals during the month.

The month was characterised by a return of the large deals, with the 260,000 sq ft pre-let to Deloitte at New Street Square, EC4, the 61,000 sq ft letting to Investec at 30 Gresham Street, EC2 and the 52,000 sq ft letting to Deutsche Bank at the Willis Building, EC3. Other large lettings included deals to Tag Worldwide, Instant Offices and Expedia.

Professional services and financial sectors topped the table of lettings by sector, helped by the Deloitte and Investec deals, followed by computer/IT and business services. The financial sector has the largest share of the 3m sq ft of space currently under offer which is likely to convert into deals in the months ahead. There has also been a noticeable surge in new requirements being launched in the London market.

By area, the City accounted for over half the deals (43) and 51pc of the floorspace let in the month, while Docklands saw nearly 100,000 sq ft let in just three deals to financial companies.

The volume of grade A (newly built or refurbished office space) let during the month increased to over 460,000 sq ft as transactions for newly developed or refurbished space rose again.

Metropolis is preparing a spring 2015 report on office space just completed and under construction in London based on its extensive database of planned office schemes.